I don't see this as a horribly bad idea. Maybe the design of how the "spot" looks would be up for question, but that could go either way. At it's essence, it would really just be a quality of life kind of thing. Sure, as max level mlg pro super vet players, WE all know we can cover our screen with the map, give away our position by firing a test shot, or click a dozen times to see if the spot mechanic is broken cause they're near a cloud or working fine and they're our ally. Perhaps stare at that threesome of hwachafish and compare it to the compass for a bit to see which one has your color's dot. Or squint really closely at that red-ballooned ship to see if they actually have your team's blue flags. Maybe even "communicate" with our silent lvl 1 who probably turned voice chat off so he can't hear you shouting at him to stop flying off the map.
Alright yes this is some very heavy-handed sarcasm, but the point I'm making is just because we've found ways around the game to make it work for us, doesn't necessarily mean a little quality of life like showing your ally's position is such a bad thing. It might even help the lower levels who don't know anything stick closer to where the fight's at if they have a more obvious indication of where you're going. It wouldn't change anything about how we play in the slightest, just help people see a bit better.
It would be an additional change towards what is already looking like a multitude of changes being made to the game for the simple sake of dumbing it down....
Hwacha jitter reduction because people couldn't figure out how to use heavy ammo, hwacha becomes the weapon that dominates the skies because it is idiot proof.
Squid balance changes suggest Muse want to make Squid easier to pilot by turning the side gun forward, because knowing gun arcs is not idiot proof enough.
The more the list gets added to, the less appealing the game becomes to some of us who have been here for a long time.
Now I agree player retention is low but if the game continues to become idiot proof and get dumbed down, then some vets will leave and the core player base will get smaller... There would be no one to welcome the annoying lvl 1 pilots that we play with.
Oh and to reply to your heavy sarcasm, Egg you know me, and you know damn well I play with novices and pub matches a lot more than I play with other higher level pilots, I know how annoying all the situations can be, so you need not treat my point of view as if it is coming from someone who only ever looks at the end game play.
The game has a learning curve, it can seem steep at first and most vets will say it's steep, but too much "quality of life" changes (read dumbing down changes) could do more damage to the game than good.